fbpx

    Supply Chain Issues and HVAC Equipment Shortage: What’s Next?


Supply chain disruptions and production shortages continue to impact the heating, ventilation, and air conditioning industry. The result is that companies do not have enough equipment to meet demand in the short term and perhaps even longer term.

Find out why HVAC equipment is in short supply, how your company can respond, and how WeShield is helping.

 

Factors contributing to the shortage of HVAC equipment

 

The ongoing COVID-19 pandemic has hampered the HVAC supply chain, as well as everything else in the world. Due to workers getting sick or taking time off to care for family members, HVAC equipment manufacturers are experiencing labor shortages.

Also, copper, steel, aluminum, and plastic, which are necessary to build HVAC equipment, are in short supply. Furthermore, semiconductor chips, in particular, are in short supply while facing high competition from other industries like car makers, smartphone manufacturers, and washing machine manufacturers.

Adding to the stress, shipping and air freight bottlenecks delay the delivery of key equipment to companies and technicians. As a result of record inflation, there is also a rise in costs throughout the entire supply chain.

It is unclear how long the HVAC equipment shortage will last. According to Deloitte, the semiconductor chip shortage will continue until at least 2023, putting a serious strain on supply. It will be necessary for businesses to rethink their strategies as a result of supply chain challenges and inflation.

What it means for the HVAC industry

 

There has been an increase in the price of HVAC equipment due to supply chain problems. Due to the shortage of goods, manufacturers must raise their prices to offset the higher raw material costs, and distributors must raise their prices to meet demand.

Therefore, consumers are facing higher HVAC equipment costs, with some items rising by more than 80% from a year ago. The shortage will only worsen since consumer demand for HVAC services remains high, especially since the summer of 2021 was the hottest on record.

Currently, HVAC companies are facing a lot of stress. In addition to raising prices for their customers to offset expenses, they might also not be able to finish a job in a timely manner due to the shortages.

 

What HVAC companies can do to respond

 

Several strategies can be used by your HVAC business to prepare for ongoing shortages.

  • Contact WeShield. It is well understood that insulated HVAC ducts are in short supply in America, which has gone from being a curious inconvenience into a nationwide emergency. You can count on us to help you connect with the materials you need. For the lowest pricing, contact a sales representative as soon as possible.
  • Order materials and equipment in advance. Equipment is typically ordered once a job is started by HVAC companies. Due to shortages, ordering on the fly may no longer be an option. It may be a good idea to stock up when you find a supplier who has a stock, like WeShield, if you have the extra cash and space. As a result, you’ll never miss a project due to lack of equipment.
  • Track suppliers with software. Tracking suppliers with different prices, products, and availability is challenging. By using procurement software, you could easily compare suppliers in one place without spending time on each one’s website.
  •  

HVAC technician preparation tips

 

You should keep your technicians up to date on supplier information so that they can share it with customers who are unhappy with ongoing HVAC equipment shortages and price increases. It’s important to let technicians know they’ll have to deal with customers’ expectations and frustrations, since they may not be prepared for high levels of emotion unless you let them know in advance.

A selling opportunity may also arise here. As customers would have difficulty replacing old systems with new ones once they break, technicians could encourage more frequent maintenance and repairs. You should also remind your technicians that these shortages won’t last forever, and they will end eventually. In this way, they can see an end to their stressful situation.

The HVAC industry will continue to face challenges until the supply chain bottleneck ends. In the interim, companies and their technicians can benefit from these strategies, along with WeShield’s assistance in locating hard-to-find supplies. Contact our representatives today to see how we can help!